Why Is The Crypto Market Down Today?

The total crypto market cap (TOTAL) continued the bearish weekend, losing over $121 billion over the last 24 hours. Bitcoin (BTC) price’s drop towards $75,000 is a matter of concern as its effect can be felt on altcoins as well, where Monero (XMR) has noted a 16% drop.

In the news today:-

• The US Treasury sanctioned two UK-registered crypto exchanges, Zedcex and Zedxion, for processing nearly $1 billion in transactions linked to Iran’s IRGC. The move marks the first time entire digital asset platforms were blacklisted under Iran-related sanctions, citing extensive USDT use on Tron and ties to Babak Zanjani.
• A UAE-backed entity linked to Sheikh Tahnoon bin Zayed agreed to acquire a 49% stake in Trump-linked World Liberty Financial for $500 million just days before Trump’s inauguration. The deal preceded U.S. approval of expanded UAE access to advanced AI chips, raising questions about timing and political influence.

The Crypto Market Slips Further

The total crypto market cap has declined by $121 billion, standing near $2.51 trillion at the time of writing. Despite the pullback, TOTAL remains above the key $2.50 trillion support level. Holding this zone suggests selling pressure is easing, preventing a deeper immediate breakdown.

Late January saw extreme volatility, with nearly $300 billion erased from the market intraday. That move reflected heightened risk aversion across global assets. If bearish momentum persists, TOTAL could lose the $2.50 trillion floor. A breakdown would likely send the market toward the next support near $2.39 trillion.

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TOTAL Price Analysis. Source: TradingView

A recovery scenario depends on renewed buying pressure across major cryptocurrencies. Strong inflows could reverse recent losses and lift token prices broadly. Under improved sentiment, TOTAL may rebound toward $2.67 trillion. Sustained strength above this level would signal stabilization and reduce near-term downside risk.

Bitcoin Lost Crucial Support

Bitcoin price is trading near $75,739 at the time of writing after sliding toward the $75,000 support level. This zone has not been tested in more than three months. BTC has declined over 15.6% in the past five days, reflecting sustained selling pressure and weak short-term sentiment.

If current market conditions persist, downside risk remains elevated. Continued risk aversion could push Bitcoin lower in the coming sessions. A breakdown below $75,000 would likely expose the $74,000 support level. Such a move would confirm ongoing bearish momentum and delay any immediate recovery attempt.

Bitcoin Price Analysis. Source: TradingView

A rebound scenario remains possible if investors view current prices as attractive entry points. Renewed buying interest could stabilize BTC near support. Under stronger demand, Bitcoin may attempt a recovery toward $80,000. Sustained strength above reclaimed levels would signal improving sentiment and reduced downside risk.

Monero Falls Below $400

Monero emerged as the worst-performing cryptocurrency of the day, plunging nearly 16% in the past 24 hours. The sharp decline pushed XMR below the $400 psychological level. This breakdown reflects heightened risk aversion and growing uncertainty among investors as selling pressure intensified.

Investor skepticism continues to weigh on Monero’s outlook. The Chaikin Money Flow indicator has declined, signaling capital outflows dominate the asset. Persistent selling could drive XMR below the $387 support level. A confirmed breakdown may open the door for a deeper drop toward the $357 region.

XMR Price Analysis. Source: TradingView

A recovery scenario remains possible if demand returns. Should XMR stabilize around $387 and reclaim $417, momentum could shift. Such a move would signal renewed buying interest. Under stronger conditions, Monero could recover toward $450, invalidating the bearish thesis and easing downside pressure.